The Average Cost of Car Insurance in Alabama

By Coverage Level

Car insurance in Alabama costs $2,051, on average, for full coverage. Depending on your driving history, vehicle type, credit score, and other important factors, that rate could be lower or higher.

If you add more coverage to your policy, your premium will increase. For minimum liability, you can expect to pay around $649 per year, which is less than half the cost of full coverage. More coverage offers greater financial protection in the event of an accident.

By Company

Travelers offers the cheapest rates for most Alabama drivers, with an average annual premium of $1,509. Meanwhile, Allstate has the most expensive rates, and Progressive and Country Financial are in the middle of the pack.

Rates vary widely based on your driving history and needs, so it’s a good idea to get at least three quotes to compare.

By Age

Because younger drivers get into more accidents and file claims at higher rates than other age groups, they pay the most, on average, for car insurance. Premiums quickly drop in your early and mid-20s and are reduced by more than half, on average, for people 30 and older.

These are the cheapest average rates based on your personal background, driving history, car insurance needs, and more.

Again, these can vary from driver to driver based on factors such as your location or the other drivers attached to your policy. Take the time to request quotes from several companies to find out exactly how much you’ll pay.

*After USAA

There are several ways to lower your car insurance premiums in Alabama.

First, increasing your comprehensive and collision deductibles can reduce your monthly costs but means paying more out of pocket if you file a claim. You can also lower your coverage limits to reduce premiums, though it’s important to make sure you still have enough protection in the event of a serious accident.

Ask your insurance agent about discounts you may qualify for, such as safe-driver or multi-policy savings. Bundling home, auto, and other insurance policies with the same company may also help you save.

Finally, review your policy for optional add-ons you may not need. Dropping unnecessary extras can lower your premium, but make sure you understand what protection you’ll be giving up before making changes.

You only need liability coverage to drive legally in Alabama, which includes bodily injury and property damage coverage. The minimum liability limits are:

• Bodily injury liability: $25,000 per person/$50,000 per accident
• Property damage liability: $25,000 per accident¹

Alabama is an at-fault state, which means that the party responsible for the injuries/damages must also pay for those damages/injuries.

More specifically, Alabama functions under pure contributory negligence, which states that you can only claim damages from the other party if you are zero percent at fault. If you are even 1 percent at fault in an accident, you cannot claim damages from the other party.

An SR-22 is a certificate that proves you have the minimum car insurance coverage required by the state of Alabama. You will typically need to file and carry an SR-22 after a serious violation, like a DUI, for three years.

Although car insurance in Alabama is cheaper, on average, than in many other states, choosing the right provider based on your background and needs can significantly reduce costs. Take the time to ask for discounts based on your age, bundling needs, driving history, and other personal factors. And if you have poor credit or a bad record, shop around — as you can see from the data, some providers will cater to your driver profile and offer cheaper rates than others.